When Audit Teams Test a Computerized Processing System,which of the Following

question 21

Multiple Choice

When audit teams test a computerized processing system,which of the following is true of the test data approach?

• A)Several transactions of each type must be tested.
• B)Test data are processed by the client's computer programs under the audit team's control.
• C)Test data must consist of all possible valid and invalid combinations.
• D)The computer program used to process test data is different from the program used throughout the year by the client.

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Definitions:

Rate Of Yield

A financial metric that calculates the amount of profit or loss an investment generates, relative to its cost.

Preferred Stock

A type of stock that offers dividends and/or liquidation preference over common stock.

Par

The face value of a bond or stock, or the standard level for a currency.

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or stock.